No, I don't write these things just so you'll hate me.
My post in the Verizon constitutional right to throttle thread got me thinking, so I did some number crunching.... Enjoy
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Over the last 2 years (typical contract length) VZ has gone from $26.65 to $45.21 a share. An increase of $18.56, or 70%.
VZ also pays a quarterly dividend, currently $0.50. For now let's assume that has been consistent for the last 2 years (8 quarters).
So, 2 years ago you plunk down $2665 for 100 shares of VZ. Those shares are now worth $4521. If you sell them you pocket $1856 in profit, plus you will have received $400 in dividends (100 shares x $0.50 per share x 8 quarters). Gross profit of $2256 (yes, the tax man cometh and there's some commissions, and we're assuming you didn't reinvest those dividends. Of course you should reinvest those divs as you'd actually make even more money, but it will just make this too confusing for neophytes).
Using my current plan as a benchmark (2 lines, family share 700, each with 250 txt msg and unlimited data, including taxes etc) is $160/month or $3840 over the 2 year contract period.
But if I owned 200 shares of VZ (100 shares for each of 2 lines), I'd be in the black for $672 ($4512 cap gains & divs - $3840 charges).
I haven't yet done a comparison for the new plans. If they make more money for VZ, as a shareholder I'd be happy. If the div yield increases, or more importantly if the stock price outpaces the higher charges, as a combo shareholder-customer, it would be hard to complain. Of course, past performance is no guarantee of future results.
Oh, bring on the flames of hell now....
Signed,
The Devil
My post in the Verizon constitutional right to throttle thread got me thinking, so I did some number crunching.... Enjoy
------
Over the last 2 years (typical contract length) VZ has gone from $26.65 to $45.21 a share. An increase of $18.56, or 70%.
VZ also pays a quarterly dividend, currently $0.50. For now let's assume that has been consistent for the last 2 years (8 quarters).
So, 2 years ago you plunk down $2665 for 100 shares of VZ. Those shares are now worth $4521. If you sell them you pocket $1856 in profit, plus you will have received $400 in dividends (100 shares x $0.50 per share x 8 quarters). Gross profit of $2256 (yes, the tax man cometh and there's some commissions, and we're assuming you didn't reinvest those dividends. Of course you should reinvest those divs as you'd actually make even more money, but it will just make this too confusing for neophytes).
Using my current plan as a benchmark (2 lines, family share 700, each with 250 txt msg and unlimited data, including taxes etc) is $160/month or $3840 over the 2 year contract period.
But if I owned 200 shares of VZ (100 shares for each of 2 lines), I'd be in the black for $672 ($4512 cap gains & divs - $3840 charges).
I haven't yet done a comparison for the new plans. If they make more money for VZ, as a shareholder I'd be happy. If the div yield increases, or more importantly if the stock price outpaces the higher charges, as a combo shareholder-customer, it would be hard to complain. Of course, past performance is no guarantee of future results.
Oh, bring on the flames of hell now....
Signed,
The Devil
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